North East holiday park firm Parkdean Resorts has secured a £25m equity injection from its owners as it looks forward to a summer of staycations.
The Newcastle based group, which has 67 parks around the UK including five in Northumberland and County Durham, said the deal, which includes an 18-month covenant waiver, demonstrates the full support it has from its Canadian private equity owners Onex and major debtholders, who acquired the firm in 2016 a part of a £1.35bn deal.
The deal gives the group – which has parks in coastal locations as well as areas of natural beauty – liquidity to trade at maximum capacity as it gears up to capitalise on the boom in staycations once holiday parks reopen next month.
Parks are looking to reopen on July 4 to owners, and to holidaymakers by July 6, depending on official guidance from the Government.
A total of 70% of units have been presold to owners for peak season, with the business seeing strong bookings for July and forecast to be at 100% capacity in August. There is also expected to be a second peak in September, with bookings well ahead of last year.
Within the region, the firm owns Church Point, in Newbiggin-by-the-Sea; Cresswell Towers at Druridge Bay, Crimdon Dene near Hartlepool; Sandy Bay in Ashington; and Whitley Bay, which shared a £1m cashpot to boost facilities as part of an £80m investment made earlier this year.
The investment was Parkdean Resorts’ largest ever into its estate, with spending on buildings, facilities, maintenance, health and safety, and environmental areas.
The company is also testing a “parks of the future” initiative in four locations to create state-of-the-art amenities including accommodation, park facilities and kids’ activity-based entertainment such as the Bear Grylls Survival Academy.
Steve Richards, chief executive of Parkdean Resorts, said: “We look forward to reopening our parks on July 6 and are well positioned to benefit from a strong UK staycations market.
“We expect to trade the peak summer months at 100% capacity as well as delivering a record September and October. Looking ahead, and to help navigate any future uncertainty, we are pleased to have successfully agreed the terms of an 18-month covenant holiday with our debtholders and a £25m equity injection from Onex our private equity owners. We are very much focused on the future and getting back to the growth levels experienced throughout 2019 and prior to the shutdown on March 23.
“Our spacious parks and self-catering, UK-based, value proposition has strong appeal to holidaymakers keen to escape to some of the UK’s stunning coastlines and beauty spots.”
